Short answer

Northrop Grumman (NOC) filed its fiscal 2025 10-K annual report with the SEC on Jan 27, 2026. It reported revenue of $42.0B (+2.2% year over year) and net income of $4.2B.

Top risk flagged: Regulatory risk: potential Nunn-McCurdy Act notifications on cost/schedule overruns may trigger program restructures or terminations impacting reputation and finances

FY2025 key financial metrics · XBRL

Revenue: $42.0B; +2.2% YoY
Net income: $4.2B; +0.2% YoY
Operating margin: 10.8%; +0.1 pp YoY
EPS (diluted): $29.08; +2.6% YoY
ROE: 25.1%; −2.2 pp YoY
Operating cash flow: $4.8B; +8.4% YoY

Source: XBRL data from the Northrop Grumman (NOC) FY2025 10-K on SEC EDGAR. USD.

Northrop Grumman FY2025 10-K analysis

AI summary of each section, grounded in the filing text

Business Overview

Core aerospace and defense technology provider to U.S. government, focusing on military aircraft, missile defense, space systems, and advanced technologies
Realignment of Strike and Surveillance Aircraft Solutions from Defense Systems to Aeronautics Systems effective January 1, 2025
Backlog grew to $95.7 billion at Dec 31, 2025, up from $91.5 billion in prior year
Workforce expansion with approx. 7,500 new employees hired in 2025, totaling about 95,000 employees
2025 sales split evenly between cost-type ($20.9B) and fixed-price contracts ($21.0B), with 84% revenue from U.S. government

Management Discussion & Analysis

Revenue $41.95B, up 2% YoY; organic sales up 3% excluding divested training services ($112M in 2025 vs $304M in 2024)
Operating income $4.51B, up 3%; operating margin 10.8% vs 10.6% in 2024
Best segment: Mission Systems with $229M higher income; worst: Aeronautics Systems down $423M due to B-21 loss provision
Gain on training services divestiture $231M; unallocated corporate expense down due to divestiture; no specific buyback/dividend/capex figures disclosed
Management highlights risks from geopolitical tensions, budget uncertainty, and B-21 program losses; expects long-term growth from defense modernization and program restructures

Risk Factors

Regulatory risk: potential Nunn-McCurdy Act notifications on cost/schedule overruns may trigger program restructures or terminations impacting reputation and finances
Macroeconomic threat: U.S. government funding reliance with 84% sales in 2025 exposes to appropriations delays, shutdowns, or debt ceiling breaches impacting cash flows
Operational risk: 50% of sales from fixed-price contracts increase exposure to cost overruns amid inflation, material shortages, and labor challenges affecting profitability
Competitive risk: increased competition from commercial contractors, startups, and use of Other Transaction Authority (OTA) awards intensifies pricing pressure and contract risk
Legal risk: investigations and audits by DCAA, DCMA, DoW Inspector General may lead to penalties, suspension, or debarment jeopardizing contract awards and revenues

Generated from the filing text; verify against the original. How to read a 10-K

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